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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: - who wrote (2653)	8/11/1999 1:39:00 PM
From: Bilow	Read Replies (1) \| Respond to of 18137

Hi Palo Alto Trader; I agree about that regulation thing. That said, I suppose that there are some regulations that they could change in such a way as to influence day traders toward safer trading. One thing I thought we were going to get was 25% margin for intraday positions. If we could trade something for that, I would jump at the chance. I've never seen an intraday day trader destroy his account in one day, but I sure have seen enough over night holds destroy people. So personally, expanding the margin requirements for overnight to 75% wouldn't bother me. The big problem I see is that the market is at historically high valuations, while inflation is stirring and the long bond is dropping. This combination is normally associated with market crashes. My fear is that when this happens later this month or early fall, daytraders will be blamed. This is despite the fact that the vast majority of the ultra-high flyers purchased (and held overnight) were bought either by institutions or by mom and pop with an on-line brokerage, not daytraders. After every market crash this country has had, a big clamour went out for increased regulation. If you think the regulation calls are loud as a consequence of the Atlanta tragedy, just watch what a trillion dollars off the stock market's capitalization does. In the event of a 1987 type event, regulation is 100% guaranteed. -- Carl P.S. Maybe this market is beginning to wake up...